Analysts Remain Bullish on Strategy's Bitcoin Buying Plans
By: cryptonews|2025/05/03 07:00:05
0
Share
Equity analysts from investment firms Benchmark and Bernstein reiterated their buy ratings and lofty price targets for Strategy (MSTR), a day after the company said that it had recorded a loss of $5.9 billion on its Bitcoin holdings in its first quarter of 2025. The analysts highlighted Strategy’s continued strategy to purchase more Bitcoin, which has become its core business after the company pivoted from software development about five years ago. “While the number of companies that have sought to replicate Strategy’s (MSTR) Bitcoin acquisition strategy has continued to grow rapidly, with more than 70 public companies having followed its lead by adding Bitcoin to their balance sheets,” Mark Palmer, Benchmark senior research analyst–fintech and digital assets wrote, “MSTR yesterday issued a reminder of the extent of its first-mover advantage and how its ability to accelerate its accumulation of Bitcoin has continued to increase as its platform has scaled.” On Thursday, Strategy reported a decline of $16.49 per common share in the first quarter of 2025—a result of Bitcoin’s price plunge during the span. The company has faced the same macroeconomic headwinds afflicting crypto and tech firms more widely, yet in Thursday’s earnings call, it expanded on its initiative to acquire more Bitcoin through stock and fixed income vehicles. Strategy, which in 2020 pivoted from software development to focus on accumulating Bitcoin, now owns around 554,000 BTC, valued at roughly $53 billion based on current prices. The company purchased its Bitcoin at an average cost of $68,459, as of April 28. The Tysons Corner, Virginia-based company is in the latter half of an initiative that it announced last October to purchase $42 billion Bitcoin through these methods, and unveiled a new “42/42 Plan to acquire an additional $42 billion in Bitcoin through 2027, Palmer noted. “It intends to raise a total of $84 billion of capital ($42 billion in equity and $42 billion in fixed income) through 2027 to fund Bitcoin purchases,” Palmer noted. “MSTR’s audacious $84 billion capital-raising target includes the $42 billion targeted by its initial plan, which is now 65% complete with ~$14.7 billion remaining.” Benchmark sets a price target of $650 for Strategy shares (MSTR), citing analysis that includes the projected value of the company’s BTC holdings, a 15x multiple of its BTC dollar gain, and the projected value of its software business. Shares of Strategy closed up 3.3% on Friday to trade at $394.37, and have risen more than 26% over the past month, with much of those gains occurring in recent weeks. MSTR has spiked more than 36% year-to-date, and came within a dollar of matching its 2025 peak price on Thursday ahead of the earnings report. Bitcoin was recently trading at about $96,700, roughly flat over the past 24 hours. BTC has climbed 14% over the past month amid an upturn in digital asset markets that recaptured ground lost from January through March. “MSTR now trades at 2.13x its net asset value, a level that we view as attractive given the company’s demonstrated ability to create shareholder value through its treasury operations,” Palmer wrote in repeating his buy rating. Bernstein analysts set a $600 price target for Strategy in their note Friday. The firm spotlighted its addition of $10 billion in Bitcoin and scaling of its “capital program to 42:42 from 21:21.” “We continue to like MSTR as the most scalable Bitcoin vehicle tapping into large institutional pools unable to access Bitcoin/spot ETFs,” the analysts wrote, noting that the company continued to trade at a premium to its Bitcoin net asset value. “We continue to value Strategy using a sum-of-the-parts approach, combining the enterprise value of its software business and its Bitcoin holdings,” Bernstein wrote. Edited by Andrew Hayward
You may also like

The large models in the United States are moving towards closure in the name of security
The government successfully inserted itself as an approver between commercial AI models and their users for the first time.

Morning Report | CoinEx becomes a key hub for Iran to evade sanctions, involving over $3.8 billion in funds; Kalshi seeks a new round of financing, with a valuation potentially rising to $40 billion
Overview of Important Market Events on June 25

From the white-haired stock god to the billionaire fund mogul, the smart people shorting Nvidia are all getting rich using the same framework
Give up on heavily investing in Nvidia's "nine major bottlenecks"! This article analyzes the underlying logic behind top AI investors making billions: physical infrastructure such as electricity, HBM, and optical interconnects are the true keys to wealth in AI hardware.

Why do cryptocurrency projects always like to change their names?
In many cases, the old names of encryption projects have no competitive advantage, only historical baggage.

Global Launch: As predictions become the most scarce asset in the AI era, Manadia is defining the next generation of the value internet
The trusted AI prediction ecosystem Manadia, which has secured $7 million in funding from well-known institutions like OKX, will globally launch in June. The core token UMXM has already been listed on multiple mainstream platforms, inviting you to seize the new blue ocean of the trillion-level predi...

Who is footing the bill for the $64 billion accounting frenzy?
Affected by Bitcoin falling below $60,000, publicly listed companies heavily invested in this asset are facing huge paper losses and valuation discounts, and their debt structure and accounting standards may trigger structural liquidity risks in the future.

I never expected that the first application of AI x Crypto would be in security auditing
AI has accelerated attack efficiency and also promoted the upgrade of defense systems. The security audit sector is undergoing a transition from a dividend model to a competitive model.

What is your view on Binance's competitive advantages?
When the dividends of rule arbitrage gradually approach zero, can we produce product strength, governance capability, and trust that are commensurate with its scale?

ETH has entered a non-consensus phase, and the turning point is approaching!
This has nothing to do with the Ethereum Foundation or Ethlabs; Ethereum needs to win by solving real problems.

The shift in the cloud of the air: from despising stablecoins a year ago to the high-profile entry of capital today
It can continue to question the cost-effectiveness of stablecoins in the G10 currency corridor, but it cannot ignore the structural opportunities of stablecoins in emerging markets, corporate finance, and on-chain settlements.

The survival dilemma of small and medium exchanges behind the withdrawal anomalies exposed by AscendEX
The living space is constantly being compressed.

Why Is Bitcoin Falling Below $60K? 5 Key Market Drivers Explained
Bitcoin has dropped sharply amid ETF outflows, Strategy stock weakness, AI stock rallies, and changing Fed expectations. Explore the key forces driving BTC’s latest correction and what traders should watch next.

Bitcoin vs. Gold in 2026: Which Asset Performs Better in Different Markets?
Bitcoin vs. gold in 2026: Why are both assets falling, and what does their changing correlation mean? Discover what drives Bitcoin and gold prices and how traders can navigate different market conditions.

Morning News | The draft amendment to the People's Bank of China Law aims to clarify the legal status of digital renminbi; South Korea will transfer about 40 unregistered virtual asset service providers to law enforcement agencies
Overview of Important Market Events on June 24

The cryptocurrency industry has entered the "Show Me" era: merely relying on vision is no longer enough
The awareness level of the audience in the cryptocurrency industry—including media, institutions, and retail investors—is steadily increasing, and this trend has become a foregone conclusion.

Interpreting the Ethereum Foundation's new structure: Reaffirming self-sovereignty amid institutional trends
The Ethereum Foundation has announced a new five-layer working framework, clarifying the focus of future development and reaffirming its commitment to decentralized core values amidst the wave of institutionalization.

Former SpaceX engineer reconstructs the financial execution system using first principles
Plan Execution Lab completes angel round financing for Singapore family office, with a valuation of 50 million USD.

Standard Chartered Bank sings a 50x rhapsody again, aiming for AAVE to reach 3500 USD
The throne of DeFi lending still exists, but the foundation beneath the throne needs to undergo a reconstruction or reinforcement.
The large models in the United States are moving towards closure in the name of security
The government successfully inserted itself as an approver between commercial AI models and their users for the first time.
Morning Report | CoinEx becomes a key hub for Iran to evade sanctions, involving over $3.8 billion in funds; Kalshi seeks a new round of financing, with a valuation potentially rising to $40 billion
Overview of Important Market Events on June 25
From the white-haired stock god to the billionaire fund mogul, the smart people shorting Nvidia are all getting rich using the same framework
Give up on heavily investing in Nvidia's "nine major bottlenecks"! This article analyzes the underlying logic behind top AI investors making billions: physical infrastructure such as electricity, HBM, and optical interconnects are the true keys to wealth in AI hardware.
Why do cryptocurrency projects always like to change their names?
In many cases, the old names of encryption projects have no competitive advantage, only historical baggage.
Global Launch: As predictions become the most scarce asset in the AI era, Manadia is defining the next generation of the value internet
The trusted AI prediction ecosystem Manadia, which has secured $7 million in funding from well-known institutions like OKX, will globally launch in June. The core token UMXM has already been listed on multiple mainstream platforms, inviting you to seize the new blue ocean of the trillion-level predi...
Who is footing the bill for the $64 billion accounting frenzy?
Affected by Bitcoin falling below $60,000, publicly listed companies heavily invested in this asset are facing huge paper losses and valuation discounts, and their debt structure and accounting standards may trigger structural liquidity risks in the future.
Customer Support:@weikecs
Business Cooperation:@weikecs
Quant Trading & MM:bd@weex.com
VIP Program:support@weex.com
